The surge in tax-exempt imports has raised concerns about unfair competition and lost tax revenue. The new rules took effect Tuesday, initially halting shipments from China, but USPS restarted them the next day, working with U.S. Customs to minimize disruptions.
The European Union (EU) is also increasing scrutiny, requiring Shein and Temu to take responsibility for unsafe products and strengthening customs checks on low-value imports. In response to U.S. tariffs, China has vowed retaliation, adding U.S. fashion giant PVH (owner of Calvin Klein and Tommy Hilfiger) to its "unreliable entity" list.
The changes have sparked calls for similar tax reforms in the UK, where low-value imports currently avoid duties. Critics argue that major ecommerce firms should pay their fair share, rather than benefiting from outdated rules designed for individual shoppers.
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